For some companies, a newsletter may be an extraordinary way to increase profits. It may lead double customer retention and triple the lifetime value of your customers. But, that doesn't mean it's for every company.
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Should a Newsletter Be Part of Your Marketing Plan?

For some companies, a newsletter may be an extraordinary way to increase profits. It may lead double customer retention and triple the lifetime value of your customers. But, that doesn't mean it's for every company. How can you determine if a newsletter's the right choice for your customers? We've put together five questions that'll help you make the decision.

1. What's your biggest business problem right now?

If you have rude customer service reps, a faulty product, or inept sales people, you're not ready to start a newsletter. If you don't know what sets you apart from competitors, if competitors offer a better value, or if you don't know who your target market is, you're not ready to start a newsletter.

So, if your current business problem is that you simply don't have time to follow up with every qualified prospect the 20 times it takes to make a sale, or if your tech support team simply can't answer all the questions they're asked every day, a newsletter can help. If you're looking for a tool to explain to customers why they should choose you over the competition, a newsletter's your answer.

A newsletter is a follow up and educational tool. It can absolutely demonstrate what sets you apart from competitors if customers don't yet know. But it can't do a thing for you if it's you who doesn't yet know.

A newsletter is the bonus - it's an extra treat for customers and prospects. Served at the end of a great meal, it'll improve customer loyalty, deliver more referrals, and increase your profits. Served alone, people will absolutely turn to your competition.

2. Who will you send the newsletter to?

Do you have a list of current and past customers and prospects? Do you have permission to send them information? Or will you have to buy a list? If you don't have people who are ready and waiting to hear from you, you may want to build the list and then start a newsletter.

How large a list you'll need depends on many things: how qualified the members are, how many contacts it takes before someone buys your product, your profit margin. Some companies find a list of 500 more than justifies the time and expenses involved with a newsletter. You may find a list of 2500 barely meets your requirements.

The most important thing to consider with your list is how qualified its members are. 200 highly qualified prospects is tremendously better than 1000 people who might be interested in your company.

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